Service Marketing Mid-Term

Which of the following represents the service characteristic that reflects the variation in consistency from one service transaction to the next?

Heterogeneity

Which industry sector employs self-service technologies?

Insurance Companies

A distinguishing characteristic of services that makes them unable to be touched or sensed in the same manner as physical goods is referred to as what?

Intangibility

Which of the following describes the consequences of ethical misconduct?

Job-related tension

Which of the following is not a product consideration used to determine service pricing?

Price discrimination is a viable practice to manage demand and supply challenges.

Which of the following activities occur during the prepurchase stage of the consumer decision process?

Problem awareness

Which of the following is calculated by dividing the activity time by the number of stations?

Process time

The practice of pricing multiple versions of the same product or grouping similar products together is referred to as what?

Product-line pricing

More than 20% of employees within the food service and drinking establishments subsector are between what ages?

16 to 19

Which strategy mitigates the worst effects of supply and demand fluctuations by planning for them?

Anticipating

Operations for a firm at what level of operational competitiveness are viewed as a necessary evil?

Available for Service

Why study services?

Because of the increase in service sector contributions to the world economy

Greg is an insurance agent who works for a large insurance agency. Greg's friend, who is also his client, wants Greg to coach him on how to obtain a larger insurance settlement than what he legitimately has coming to him. With what type of ethical issue is Greg facing?

Conflict of interest

In comparison to businesses that sell goods, which of the following do service businesses have?

Consumers who experience greater price uncertainty more difficulty using cost-based pricing Higher fixed costs in relation to variable costs All of these

Attributes that cannot be evaluated confidently, even immediately after receipt of the good or service, are called what?

Credence attributes

Which of the following is an example of handling only exceptions to routine service on a face-to-face basis?

Decoupling

What is a service?

Deeds, efforts, or performances

The rich get richer and the poor get poorer is referred to as what?

Dichotomization of wealth

Approximately 30% of the workforce within the Arts, Entertainment, and Recreation subsector has no formal education beyond high school.

False

Perishability means that services can be saved and unused capacity in service can be reserved.

False

T/F Because there are advantages to having production capability at a single site, the plant-within-a-plant strategy introduces the concept of merging multiple processes together into larger units.

False

T/F Blueprinting identifies the direction in which processes flow, but fails to pinpoint bottlenecks in the system.

False

T/F Eco-efficiency involves developing a radical innovation that will allow the company to be more environmentally friendly while maintaining cost competitiveness.

False

T/F Hard technologies refer to the rules, regulations, and procedures that facilitate the production of a standardized product.

False

T/F Objects, devices, or things are services

False

T/F Organization and systems components of the servuction model are visible to consumers.

False

T/F Service marketing myopia occurs when firms focus primarily on the service aspects of their business and overlook the tangible products.

False

T/F Services are first produced, then sold, then consumed.

False

T/F The perceived-control perspective is a model in which consumers evaluate services by comparing expectations with perceptions.

False

T/F The reason services have few search attributes is primarily attributed to inseparability.

False

The U.S. Bureau of Labor Statistics provides an overview of each of the nine supersectors as well as a career guide.

False

The primary mission of any service firm is to meet the needs and wants of its personnel who are providing the service.

False

When using a new version of a software package, consumers are required to learn new steps. This represents which type of switching costs?

Learning costs

Which of the following is a major challenge caused by perishability?

Matching demand and supply

The idea of consumer surplus is the simplest argument for which of the following?

Mixed bundling

Which of the following refers to the actual dollar price paid by the consumer for a product?

Monetary price

Which of the following is a strategy developed to offset the challenges posed by intangibility?

Organizational image development

Employing part-time workers is a strategy for combating the effects of which of the following?

Perishability

What does the script perspective argue?

Rules, mostly determined by social and cultural variables, exist to facilitate interactions in daily repetitive events, including a variety of service experiences.

Which of the following refers to the scale that displays a range of products along a continuum based on their tangibility?

Scale of market entries

Which of these are constructed from the results of two-sided blueprints?

Script norms

Which of the following does not impact consumer vulnerability to ethical misconduct in the service sector?

Services performed in the firm's physical facilities

Which of the following factors of the servuction model do service firms such as hospitals, resorts, and child-care centers often use extensively as they design facilities and other tangibles associated with the service?

Servicescape

Which of the following is a multi-attribute choice model used by so-called "lazy decision makers" in the evaluation of alternatives phase of the prepurchase stage of the consumer decision process?

Systematic approach

Critical incident refers to the specific interaction between a customer and a service provider.

True

Due primarily to their intangibility, services contain few search attributes.

True

Relationship pricing encourages the customer to expand his or her dealings with the service provider.

True

Research indicates that employees of firms that have codes of ethics believe that violators of the code should be punished.

True

Standardization and quality control are difficult to maintain throughout the service delivery process.

True

T/F A consumer's price sensitivity will increase as the perceived unique value of the service increases.

True

T/F Buyers' perceptions of value represent a trade-off between the perceived benefits of the service to be purchased and the perceived sacrifice in terms of the total costs to be paid.

True

T/F Charging customers different prices for essentially the same service is price discrimination.

True

T/F Consumers are aware of fewer alternatives because less prepurchase information is available.

True

T/F Customers ultimately determine the type of demand, the cycle of demand, and the length of the service experience.

True

T/F Hong Kong has the largest service sector in the world.

True

T/F Offering a guarantee is a form of satisfaction-based pricing

True

T/F Perceived risk is proposed to consist of two dimensions: consequences and uncertainty.

True

T/F Researchers clearly understand how consumers make decisions.

True

T/F Specialization positioning strategy is accomplished by reducing complexity.

True

The U.S. Bureau of Labor Statistics provides an overview of each of the nine supersectors as well as a career guide.

True